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EXECUTIVE SUMMARY

The summer training was on the project LOCATION OF BUSINESS OPPURTUNITIES IN PUNE. The main objective of the project was to Make a Business Plan For Sales And Distribution for Competitive Advantage.

Before the actual data collection and analysis ,for two weeks I visited various outlets in different parts of Pune , along with DSR to understand the business as well as geographical area.

After understanding the Distribution business of the company , In the Span of Four week data is collected from various outlets in different parts of Pune and also met the Sales Persons of Various Companies to know their Distribution structure in Pune.

Along with Data collection , To understand the Role of Distributor , I visited at various Distributors Points of the company and understood their role in the Business.

The Data collected is Primary and was collected through Face- to- Face questionnaire interviews. After the data analysis and interpretation we concluded that, there are still 28% of the outlets in Pune which are not selling Heinz products, also the competitors Distribution network is very much strong than the Heinz Distribution network, which is affecting the growth of the company negatively.

. There were some constraints also that came across during the survey like non-cooperation of respondents during face to face interview and hiding of information by respondents, human biased nature etc.

The project also came up with certain recommendations for increase in market share by adding more outlets in the current structure, use of scientific technology for beat formation, and to take effective action towards making the workforce happy.

The project gave me a lot of knowledge about the FMCG industry & especially micro selling concept& different distribution strategies adopted by the companies.

INTRODUCTION

INTRODUCTION OF INDUSTRY What are Fast Moving Consumer Goods (FMCG)?

Products which have a quick turnover, and relatively low cost are known as Fast Moving Consumer Goods (FMCG). FMCG products are those that get replaced within a year. Examples of FMCG generally include a wide range of frequently purchased consumer products such as toiletries, soap, cosmetics, tooth cleaning products, shaving products and detergents, as well as other non-durables such as glassware, bulbs, batteries, paper products, and plastic goods. FMCG may also include pharmaceuticals, consumer electronics, packaged food products, soft drinks, tissue paper, and chocolate bars. A subset of FMCGs are Fast Moving Consumer Electronics which include innovative electronic products such as mobile phones, MP3 players, digital cameras, GPS Systems and Laptops. These are replaced more frequently than other electronic products. White goods in FMCG refer to household electronic items such as Refrigerators, T.Vs, Music Systems, etc. In 2005, the Rs. 48,000-crore FMCG segment was one of the fast growing industries in India. According to the AC Nielsen India study, the industry grew 5.3% in value between 2004 and 2005. Indian FMCG Sector The Indian FMCG sector is the fourth largest in the economy and has a market size of US$13.1 billion. Well-established distribution networks, as well as intense competition between the organised and unorganised segments are the characteristics of this sector. FMCG in India has a strong and competitive MNC presence across the entire value chain. It has been predicted that the FMCG market will reach to US$ 33.4 billion in 2015 from US $ billion 11.6 in 2003. The middle class and the rural segments of the Indian population are the most promising market for FMCG, and give brand makers the opportunity to convert them to branded products. Most of the

product categories like jams, toothpaste, skin care, shampoos, etc, in India, have low per capita consumption as well as low penetration level, but the potential for growth is huge. The Indian Economy is surging ahead by leaps and bounds, keeping pace with rapid urbanization, increased literacy levels, and rising per capita income. The big firms are growing bigger and small-time companies are catching up as well. According to the study conducted by AC Nielsen, 62 of the top 100 brands are owned by MNCs, and the balance by Indian companies. Fifteen companies own these 62 brands, and 27 of these are owned by Hindustan Lever. Pepsi is at number three followed by Thums Up. Britannia takes the fifth place, followed by Colgate (6), Nirma (7), Coca-Cola (8) and Parle (9). These are figures the soft drink and cigarette companies have always shied away from revealing. Personal care, cigarettes, and soft drinks are the three biggest categories in FMCG. Between them, they account for 35 of the top 100 brands.

THE TOP 10 COMPANIES IN FMCG SECTOR S.NO. Companies 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. Hindustan Unilever Ltd. ITC (Indian Tobacco Company) Nestle India GCMMF (AMUL) Dabur India Asian Paints (India) Cadbury India Britannia Industries Procter & Gamble Hygiene and Health Care Marico Industries

The companies mentioned in Exhibit I, are the leaders in their respective sectors. The personal care category has the largest number of brands, i.e., 21, inclusive of Lux, Lifebuoy, Fair and Lovely, Vicks, and Ponds. There are 11 HLL brands in the 21, aggregating Rs. 3,799 crore or 54% of the personal care category. Cigarettes account for 17% of the top 100 FMCG sales, and just below the personal care category. ITC alone accounts for 60% volume market share and 70% by value of all filter cigarettes in India.

The foods category in FMCG is gaining popularity with a swing of launches by HLL, ITC, Godrej, and others. This category has 18 major brands, aggregating Rs. 4,637 crore. Nestle and Amul slug it out in the powders segment. The food category has also seen innovations like softies in ice creams, chapattis by HLL, ready to eat rice by HLL and pizzas by both GCMMF and Godrej Pillsbury. This category seems to have faster development than the stagnating personal care category. Amul, India's largest foods company, has a good presence in the food category with its ice-creams, curd, milk, butter, cheese, and so on. Britannia also ranks in the top 100 FMCG brands, dominates the biscuits category and has launched a series of products at various prices. In the household care category (like mosquito repellents), Godrej and Reckitt are two players. Goodknight from Godrej, is worth above Rs 217 crore, followed by Reckitt's Mortein at Rs 149 crore. In the shampoo category, HLL's Clinic and Sunsilk make it to the top 100, although P&G's Head and Shoulders and Pantene are also trying hard to be positioned on top. Clinic is nearly double the size of Sunsilk. Dabur is among the top five FMCG companies in India and is a herbal specialist. With a turnover of Rs. 19 billion (approx. US$ 420 million) in 2005-2006, Dabur has brands like Dabur Amla, Dabur Chyawanprash, Vatika, Hajmola and Real. Asian Paints is enjoying a formidable presence in the Indian sub-continent, Southeast Asia, Far East, Middle East, South Pacific, Caribbean, Africa and Europe. Asian Paints is India's largest paint company, with a turnover of Rs.22.6 billion (around USD 513 million). Forbes Global magazine, USA, ranked Asian Paints among the 200 Best Small Companies in the World. Cadbury India is the market leader in the chocolate confectionery market with a 70% market share and is ranked number two in the total food drinks market. Its popular brands include Cadbury's Dairy Milk, 5 Star, Eclairs, and Gems. The Rs.15.6 billion (USD 380 Million) Marico is a leading Indian group in consumer products and services in the Global Beauty and Wellness space.

Outlook

There is a huge growth potential for all the FMCG companies as the per capita consumption of almost all products in the country is amongst the lowest in the world. Again the demand or prospect could be increased further if these companies can change the consumer's mindset and offer new generation products. Earlier, Indian consumers were using non-branded apparel, but today, clothes of different brands are available and the same consumers are willing to pay more for branded quality clothes. It's the quality, promotion and innovation of products, which can drive many sectors.

INTRODUCTION TO COMPANY: The H.J. Heinz Company, headquartered in Pittsburgh, Pennsylvania, is the most global of all U.S.-based food companies. Famous for our iconic brands on five continents, Heinz provides delicious, nutritious and convenient foods for families in 200 countries around the world. In more than 50 of those countries, we enjoy the number-one or number-two market position. To learn more visit www.heinz.com. Heinz in India Heinz came to India in 1994 by taking over the Family Products Division of Glaxo with powerful brands such as Complan, Glucon-D, Nycil and Sampriti. Heinz India is fully integrated into the global Heinz operations employing high standards in quality at its state-of-the-art manufacturing facility at Aligarh in the State of Uttar Pradesh. This manufacturing facility is HACCP certified and follows GFMP (Good Food Manufacturing Practices) to deliver nutritious and safe food products to our discerning consumers.

Heinz in India provides taste and nutrition through globally trusted products like Heinz Tomato Ketchup and strong local products like Complan - with extra growing power, Glucon-D - the refreshing energy drink, Nycil - the most effective prickly heat powder and Sampriti Ghee Mahek bhara swaad. Heinz products synergize the three pillars of the Heinz tradition namely TRUST, TASTE & NUTRITION.

Today, iconic brands like Complan & Heinz and category leaders like Glucon D & Nycil are being nurtured with a combination of formulation and flavour upgradation, packaging innovations and new positioning strategies with strong equity quotients.

INTRODUCTION TO PROJECT:

In this project I studied Distribution network of Heinz. I hence surveyed by moving to certain markets and several outlets across Pune . I analyzed all the positive and negative factors of distribution network of Heinz and tried to compare between Heinz distribution network and distribution network of various FMCG companies On the basis of the outcome of the analysis , I have recommended few suggestions which will assist them in gaining competitive advantage and also in increasing their sales productivity.

OBJECTIVE AND SCOPE:

Title of the Project: Identifying Business opportunities in Pune .

OBJECTIVE AND SCOPE OF THE PROJECT Submit Business Plan for Sales & Distribution in Heinz for competitive advantage in 1. Distribution 2. Rapid Business Growth 3. Enhanced Sales Productivity
To conduct the following Analysis for Arriving at the Business Plan 1. Evaluate Current Distribution Model of Heinz across channels and across town class. 2. Compare Heinz Model with other players in the category/ Competition/ other industries. 3. Understand various Channel Partners and their role and evaluate their current performance. 4. Understand the role of the sales team position (DSR) in driving the sales/distribution and evaluate their current productivity. 5. Conduct SWOT Analysis of Present S&D Model of Heinz.

4 COMPANY PROFILE-

COMPANY NAME:

H.J HEINZ INDIA PVT. LTD.

MISSION STATEMENT: As the trusted leader in nutrition and wellness, Heinz - the original Pure Food Company is dedicated to the sustainable health of the people, the planet and our Company.

HEINZ VALUES:

Team Building & Collaboration - We embrace great ideas from everywhere and everyone and respect all individuals. Innovation - We spot consumer and customer needs and meet them with simple, creative solutions. Vision - We define a compelling, sustainable future and create the path to achieve it. Results - We deliver on commitments, take accountability and balance the short- and long-term. Integrity - We always tell the truth, act with the highest ethical standards and ensure that our products are of the highest quality.

LOGO:

CORPORATE PROFILE:

LOCATION: PUNE

PRODUCT RANGE AND VARIETIES:

HEINZ KETCH-UP:

Heinz first Ketchup Plant in India was set up in 1990 in Bangalore. Heinz is the only Ketchup that is entirely devoid of artificial preservatives, colours, flavours and emulsifiers. It is rich in Lycopene, an antioxidant that has been scientifically proven to reduce the risk of certain types of cancer. Heinz is almost synonymous with Ketchup around the world. In, India Heinz is steadily ketchingup with the consumers and their Indian food palate. Its unique taste with the right blend of spice and sweetness enhances the taste of snacks from French fries and Burgers to Sandwiches and Samosas. Children want the flavour of the ketchup even with their meals to make them more enjoyable and thats why we call it Good Food Everyday with Heinz Tomato Ketchup. Today Heinz Ketchup is present in Indian market in the form of 1ltr.and 500ml Glass bottle, 1lt. and 500 ml squeeze plastic bottle as well as in 8ml sachets in both tomato and chilli flavors.

COMPLAN:

Complan is the complete planned food is a milk based nutritional based health beverage fortified with 23 vital nutrients in balanced proportion including 100% Milk Protein to help children grow better. Complan is the nutritional expert in the category and its formulation is mainly designed as per Indian RDA. Complan 23vital nutrients include key nutrients such as: Essential fatty acids, Iron and Iodine. Complan is present in 6 yummy flavors that kids like. The flavors are: Chocolate, Kesar Badam, Strawberry, Mango, Caramel and Natural, Memory.

Complan Nutri-Gro:

Complan Nutri-Gro is the complete Planned Food in a drink for 2-4 year old childrens. The age of 2+ to 4 years is a critical phase of growth for child. However this growth may slow down because of your childs increased vulnerability to illnesses, due to fussy eating and exposure to the outside world. Complan Nutri-Gro, specially formulated with the help of a nutritionist to build childs immunity and help all round growth during the critical phase of 2+ to 4 years. Complan Nutri-Gro has Special Immunity Builders,100% Key Growth Nutrients,DHA (helps brain functioning)

Glucon-D

Since 1933, Glucon-D has been a dominant leader among glucose-based beverages. Glucon-D is the preferred choice in summer when the scorching heat drains out body glucose. Glucon-D contains 99.4% glucose. It is easily absorbed by body, thus giving instant energy & rejuvenation. As part of the Brand Equity Survey in 2010, Glucon-D was adjudged the 19th most trusted brand and 3rd among beverages. Glucon-D is available in 3 delicious flavours Original, Tangy Orange & Nimbu Pani. Glucon-D Isotonik Energy Drink is an Isotonic energy drink for quick replenishment of essential body salts during sports & high-intensity activities.

Nycil:

Nycil is Indias no. 1 Effective Prickly Heat Talcum Powder. With a heritage of over 34 years, Nycil is one of the most trusted and recognized power Brand in India. Nycil is the leader in the Prickly Heat Powder category and has driven growth over the years. Nycil understands the mothers concern and offer her the product that can prevent Prickly Heat. It has been clinically proven that using Nycil twice a day for 4 days prevents prickly heat. Nycil is available in 4 flavors Classic, Sandal, Herbal, Lavendar.

Sampriti Pure Ghee:

Sampriti is 100% pure ghee manufactured in Aligarh (Uttar Pradesh) in our own state-ofthe-art production plant, through a complete backward integrated process of procuring milk directly from farmers. The ghee is primarily made of buffalo milk and is sold in India through retail, civil supplies and through bulk ghee channels.

LIST OF COMPETITORS: In Ketchup Segment:

BRANDS Maggi Kissan Tops Chings And many Local Brands

NAME OF THE COMPANY Nestle HUL Tops India Chings and Smith Jones

In Milk Food Drink Segment: BRANDS Horlicks Bournvita Milo Nutramul Boost Maltova Viva Bournvita Little Champ NAME OF THE COMPANY Glaxo Smith Kline Cadbury Nestle GCMMF Glaxo SmithKline Glaxo SmithKline Glaxo SmithKline Cadbury

Horlicks Junior PediaSure

Glaxo SmithKline Abbott-Pediasure

In the Segment of Glucose Drink: BRANDS Glucose-D Glaxose-D Rasna Glucose-D Boost Glucose-D NAME OF THE COMPANY Dabur HUL Rasna Glaxo SmithKline

In the segment of Prickly Heat Powder: BRANDS Dermicool Boroplus Life Buoy NAME OF THE COMPANY Paras Reckitt Benckiser Emami HUL

In the Ghee Market: BRANDS Amul Ghee Every Day Hutson Cow Ghee Param Ghee NAME OF THE COMPANY GCMMF Nestle Hutson Agro Product Ltd. Param Dairy Limited

Gowardan

Parag Milk and Milk Products

Head Office Address Heinz India Private Limited Affiliate of H.J. Heinz Company Regd Office: D-Shivsagar, 7th & 8th Floors, Dr. Annie Besant Road, Worli, Mumbai 400 018 India

Factory Address: Heinz India Private Limited - Aligarh Factory Manzurgarhi, PO Box no. 1 Aligarh 202 001 Heinz India Pvt Ltd Sitarganj Factory D99 A&B, Eldeco SIDCUL Industrial Park Sitarganj. Dist Uddham Singh Nagar Uttarakhand 262405

History:

H.J Heinz Co. is the iconic US based global food giant. It has a world-class portfolio of powerful brands which hold the number one and number two positions in 50 different countries around the world. The 130 year old company is based in Pittsburg, Pennsylvania. Valued at $ 10 billion its top 15 brands account for almost two three of the annual sales. With a presence in almost 200 countries it has massive reach across continents.

Heinz India Pvt. Ltd. was formed in the year 1994 by buying out the consumer products division of pharmaceutical company Glaxo in a Rs. 210-crore deal that gave 100-percent subsidiary of H.J Heinz Co. a readymade portfolio of brands such as Complan, Glucon-D, Nycil and Farex. Today after almost seventeen years of its entry its turnover is valued at almost 450-500crores.

Heinz with its global reach offer a range of 5,700 product varieties. Its major category of operation is in the FMCG sector with a concentration on the packaged food industry. The major flagship products for HEINZ is the Heinz Tomato Ketchup. Inspite of the wide range of products the major revenue is from few selected products. In India, Heinz distributes products like Glucon_D, Complan, Nycil, Sampriti Pure Desi Ghee. It recently entered into agreement with MJF Tea Ltd. To distribute Dilmah Tea in India. The Heinz Tomato Ketchup, the companys premier product is available in numerous varieties which will be talked about in depth later.

5 CONCEPTUAL BACKROUND:

For marketers, the distribution decision is primarily concerned with the supply chains front-end or channels of distribution that are designed to move the product (goods or services) from the hands of the company to the hands of the customer. Obviously when we talk about intangible services the use of the word hands is a figurative way to describe the exchange that takes place. But the idea is the same as with tangible goods. All activities and organizations helping with the exchange are part of the marketers channels of distribution. Activities involved in the channel are wide and varied though the basic activities revolve around these general tasks: Ordering Handling and shipping Storage Display Promotion Selling Information feedback

Type of Channel Members Channel activities may be carried out by the marketer or the marketer may seek specialist organizations to assist with certain functions. We can classify specialist organizations into two broad categories: resellers and specialty service firms.

Resellers These organizations, also known within some industries as intermediaries, distributors or dealers, generally purchase or take ownership of products from the marketing company with the intention of selling to others. If a marketer utilizes multiple resellers within its distribution channel strategy the collection of resellers is termed a Reseller Network. These organizations can be classified into several sub-categories including:

a) Retailers Organizations that sell products directly to final consumers. b) Wholesalers Organizations that purchase products from suppliers, such as manufacturers or other wholesalers, and in turn sell these to other resellers, such as retailers or other wholesalers. c) Industrial Distributors Firms that work mainly in the business-to-business market selling products obtained from industrial suppliers.
d) Specialty Service Firms - These are organizations that provide additional services

to help with the exchange of products but generally do not purchase the product (i.e., do not take ownership of the product):
e) Agents and Brokers Organizations that mainly work to bring suppliers and

buyers together in exchange for a fee .


f) Distribution Service Firms Offer services aiding in the movement of products

such as assistance with transportation, storage, and order processing. g) Others This category includes firms that provide additional services to aid in the distribution process such as insurance companies and firms offering transportation routing assistance.

Benefits Offered by Channel Members When choosing a distribution strategy a marketer must determine what value a channel member adds to the firms products. Remember, as we discussed in the Product Decisions tutorial, customers assess a products value by looking at many factors including those that surround the product (i.e., augmented product). Several surrounding features can be directly influenced by channel members, such as customer service, delivery, and availability. Consequently, for the marketer selecting a channel partner involves a value analysis in the same way customers make purchase decisions. That is, the marketer must assess the benefits received from utilizing a channel partner versus the cost incurred for using the services. These benefits include:

1. Cost Savings in Specialization Members of the distribution channel are specialists in what they do and can often perform tasks better and at lower cost than companies who do not have distribution experience. Marketers attempting to handle too many aspects of distribution may end up exhausting company resources as they learn how to distribute, resulting in the company being a jack of all trades but master of none.

2. Reduce Exchange Time Not only are channel members able to reduce distribution costs by being experienced at what they do, they often perform their job more rapidly resulting in faster product delivery. For instance, consider what would happen if a grocery store received direct shipment from EVERY manufacturer that sells products in the store. This delivery system would be chaotic as hundreds of trucks line up each day to make deliveries, many of which would consist of only a few boxes. On a busy day a truck may sit for hours waiting for space so they can unload their products. Instead, a better distribution scheme may have the grocery store purchasing its supplies from a grocery wholesaler that has its own warehouse for handling simultaneous shipments from a large number of suppliers. The wholesaler will distributes to the store in the quantities the store needs, on a schedule that works for the store, and often in a single truck, all of which speeds up the time it takes to get the product on the stores shelves.

3. Customers Want to Conveniently Shop for Variety Marketers have to understand what customers want in their shopping experience. Referring back to our grocery store example, consider a world without grocery stores and instead each marketer of grocery products sells through their own stores. As it is now, shopping is time consuming, but consider what would happen if customers had to visit multiple retailers each week to satisfy their grocery needs. Hence, resellers within the channel of distribution serve two very important needs: 1) they give customers the products they want by purchasing from many suppliers (termed accumulating and assortment services), and 2) they make it convenient to purchase by making products available in single location.

4. Resellers Sell Smaller Quantities Not only do resellers allow customers to purchase products from a variety of suppliers, they also allow customers to purchase in quantities that work for them. Suppliers though like to ship products they produce in large quantities since this is more cost effective than shipping smaller amounts. For instance, consider what it costs to drive a truck a long distance. In terms of operational expenses for the truck (e.g., fuel, truck drivers cost) lets assume it costs (US) $1,000 to go from point A to point B. Yet in most cases, with the exception of a little decrease in fuel efficiency, it does not cost that much more to drive the truck whether it is filled with 1000 boxes containing the product or whether it only has 100 boxes. But when transportation costs are considered on a per product basis ($1 per box vs. $10 per box) the cost is much less for a full truck. The ability of intermediaries to purchase large quantities but to resell them in smaller quantities (referred to as bulk breaking) not only makes these products available to those wanting

smaller quantities but the reseller is able to pass along to their customers a significant portion of the cost savings gained by purchasing in large volume.

5. Create Sales Resellers are at the front line when it comes to creating demand for the marketers product. In some cases resellers perform an active selling role using persuasive techniques to encourage customers to purchase a marketers product. In other cases they encourage sales of the product through their own advertising efforts and using other promotional means such as special product displays.

6. Offer Financial Support Resellers often provide programs that enable customers to more easily purchase products by offering financial programs that ease payment requirements. These programs include allowing customers to: purchase on credit; purchase using a payment plan; delay the start of payments; and allowing trade-in or exchange options.

7. Provide Information Companies utilizing resellers for selling their products depend on distributors to provide information that can help improve the product. High-level intermediaries may offer their suppliers real-time access to sales data including information showing how products are selling by such characteristics as geographic location, type of customer, and product location (e.g., where located within a store, where found on a website). If high-level information is not available, marketers can often count on resellers to provide feedback as to how customers are responding to products. This feedback can occur either through surveys or interviews with resellers employees or by requesting the reseller allow the marketer to survey customers

Flow Diagram of The Entire Distribution Channel:

RESEARCH METHODOLOGY:

RESEARCH METHODOLOGY 6.1-What research? Research in common parlance refers to a search for knowledge .Research is an endeavour to discover answers to problem (intellectual and practical) through the application Of scientific method to the knowledge universe. The Websters international dictionary gives a very incusive definition to research as A careful critical inquiry or examination in seeking facts are principles ,.diligent investigation in order to ascertain something.

The research is defined as The manipulation of the things, concept or symbols for the Purpose of theory of generalising to extent correct or verified knowledge, which aid in the Construction of theory or in the practice of an art.-D.Slesinger and M.stepheson

It is also defined as The systematic and objective analysis and recording of controlled that may lead to the development of generalising, principles, or theories ,resulting in prediction and possibly ultimate control of event.-John W.Best

6.2 Method of data collection: There are mainly two type of data collection method: a) Primary data collection method b) Secondary data collection method

a)Primary data collection method: Primary data is the information collected during the course of an experiment during the experimental research. It includes Observation method Interview method Questionnaire and schedules. Other method are warranty cards Distributor audit Pantry audits Consumer panel

b) Secondary data collection method: Secondary data means data that is already available in various report, diaries, letters, and book. The source of data collection is: Private document-like diary, letters. Report published by various organisations. Magazines, journals. Technical and trade journals. Encyclopaedias Statistical abstracts. Data contained in thesis of Ph.D student.

6.3 Sources concern with project:

a) Primary data: The primary data is collected using designed questionnaire.Each organization is personally

Visited by researcher.

b) Secondary data: The secondary data was collected in the form of company profile and from the company web Site. Some of the books were referred for theoretical concept.

Research Design: . Title of Research: Location of Business Opportunities In Pune.

Research Design Type: Descriptive research design.

Universe of the Study: All the retailers in Pune constituted the universe of the study.

Sample and Sample Unit: Here each retailer was considered as a sample unit of the study. Sample selection was based on convenience Sampling (Non-probability sampling). Considering the time and resource constraints only 492 retailers were finally selected as the sample.

Sampling Technique: Convenience Sampling (Non-probability sampling).

Unit of study: 492 respondents.

Measurement Level: Nominal Measurement Level.

Methods and tools of data collection: The tool used is questionnaire and personal interview method. A survey was conducted to evaluate the Current Sales and Distribution Channel Of Heinz.

Primary data used for the current study has been collected through the survey method by using the self-structured questionnaire consisting of close ended questions. The questionnaire consists of two sections:

First section deals with the personal information of the retailers & the about their retail outlet.

Second section deals with the questions related to Distributors Service.

In this process the personal interview method came in handy to explain the respondents the questions in the questionnaire as and when they faced any problem while answering the questions. This helped in clearing their doubts in case of any confusion they had in their minds.

Following facts were kept in mind while preparing the questionnaire:-

We tried to construct the questionnaire with a view to forming a logical part of a well thought out tabulation plan and also tried to set it in an easy language.

Maximum questions are of multiple-choice nature and there can be more than one answer for most of them.

The comments and suggestions were open ended question so that the respondent could elaborate upon their thought.

First we prepared a rough draft of questionnaire with due thought to the appropriate sequence of putting questions.

We also gave attention that questionnaire must contain simple but straight forward directions for the respondents so that they may not feel any difficulty in answering the questions.

DATA Analysis

Qno1 What is the number of each of the types of outlet visited?

Outlet Type Medical shop Super Markets Total

Number 217 275 492

INTREPRETETION: Out of the Total Market Surveyed: 44% of the Outlet were Medical Shops 56% of the Outlet were Super Shops

Qno2. Do you sell Heinz Product? Yes No

INTREPRETATION:

Out of 492 outlet surveyed: 72% i.e. 355 were selling Heinz Products. And 28% i.e 137 were not selling Heinz Products.

Qno3 If no, what is the reason?

Lack of Demand Lack of availability If any other, explain

Low margin Low Promotional Scheme

_______________________________________________________________________ ______________________________________________________________________

INTREPRETATION: The reason Behind not selling of Heinz Products are: 56% i.e. 74 out of the 137 Retailer dont sell because of unavailability. 22% i.e. 31 out 137 say due to Low Promotional schemes 16% i.e. 22 out of 137 say they dont due to Low Margin. And remaining 6% say 9 retailers say they dont sell due to Lack Of Demand.

Qno.4 If Yes, Which among the Following Skus you sell? Heinz Ketchup Nycil Sampriti Complan Glucon-D

INTREPRETATION:

Out of 355 outlets 48 keep Heinz ketchup for selling. 245 keep Complan for selling. 255 keep Nycil for selling.

321 keep Glucon-D for selling. And no outlet is keeping Sampriti Ghee.

Qno5 What is the monthly sales of Heinz Products at your outlet? Below Rs 6000- Rs 9000 Rs 3000- Rs 6000 Rs 9000 onwards

INTREPRETATION:

98 outlets have their monthly sales of Heinz Products Below Rs 3000. 135 outlets have their monthly sales of Heinz Products in between Rs 3000 Rs 6000. 73 outlets have their monthly sales of Heinz Products in between Rs 6000 Rs 9000. And 49 outlets have their monthly sales of Heinz Products above 9000.

Qno6 From where you Purchase the Heinz Products? Distributor Wholesaler

Other, If any, Please mention: _____________________________________________

INTERPRETETION:

75% i.e. 267 Retailers make purchases from Distributor. And 25% i.e 88% Retailers purchase stock from Wholeseler.

Qno7 What is the frequency of DSR visit? Once in a week More than 10 days Twice in a Week Dont come

INTREPRETATION:

182 retailers had said that the DSR visit once in a Week. 22 retailers had said the DSR visit Twice in a week 123 retailers had said the DSR come after 10 days. And 165 retailers had said DSR dont come to their outlets.

Qno8 Are you aware about the current schemes of offered by the company? Yes No

INTREPRETATION:

217 Retailers said that they are aware of the current Schemes. Where as 136 Retailers said that they dont know any of the companys schemes.

Qno9 What is the mode of Purchase by you? Cash Credit

INTREPRETATION: 185 out of 267 Retailers had said they purchase on cash. And remaining 82 out of 267 Retailers had said they take credit too.

Qno10 If Credit, What is the credit period being given to you ? 3 Days 2 weeks 1 week More

INTREPRETATION: 48 out of 82 retailers had said they get credit only for 3 days.

While 34 had said their credit limit is up to 1 week.

Qno 12 How Long it takes to Deliver your order ? With in 24 hours 3rd Day 2nd Day More

INTREPRETATION: 96 out of 267 retailers had said they get delivery with in 24 hours. 128 said they get delivery on 2nd day. 24 had said the stock is delivered at their place on 3rd day. And remaining 18 had said they get delivery after 3 days.

Qno14 Are you satisfied with the current service of the Distributor? Yes No

INTREPRETATION:

269 out of 492 had siad they are satisfied with the service of the distributor. where as 223 had said they are not satisfied with the service of the distributor.

Qno15 Is there any visibility scheme offered to you by the company? Yes No

INTREPRETATION: 56 Retailers out of 267 had said they are getting the visibility scheme. Where as 210 had said they dont get any visibility schemes.

16 CURRENT DISTRIBUTION STRUCTURE OF HEINZ IN PUNE:

NUMBER OF DISTRIBUTOR NUMBER OF DSR NUMBER OF OUTLETS NUMBER OF BEATS AVERAGE OUTLET /BEAT DURATION BETWEEN TWO VISITS DELIVERY TIME

3 11 2450 71 35 1 week 24 hrs

INTERPRETATION: The above Table shows the Distribution Structure of Heinz in PUNE.

Qno 17 DISTRIBUTION MODEL OF SOME FMCG COMPANIES IN PUNE?

INTERPRETATION:

The above table shows the Distribution Structure of various Companies in Pune.
COMPANY NAME NUMBER OF RETAIL OUTLETS NUMBER DISTRIBUTOR OF 7+1 7+1 7+1 2+1 8+1 6+1 NESTLE DABUR approx 11,000 CADBURY GSK R&B KALLOGS

13,745

8500

5,000

5,500

4,000

NUMBER OF DSR OUTLETS BEAT PER 25-40

50

48

40

22

31

18

35

30

30

30

30-35

CREDIT POLICY IN THE MARKET SALARY OF THE DSR FREQUENCY OF TAKING ORDER

1 WEEK Rs. 6,00014,000

15 DAYS

7 DAYS

7 DAYS Rs 5,500 -Rs. 7,500

7 DAYS

7 DAYS Rs 5,500 -RS 6,500

Rs 10,000

Rs 7,000

Rs 5500

WEEKLY with in 24 HRS

WEEKLY WITH IN 24 HRS

WEEKLY WITH IN 24 HRS

WEEKLY WITH IN 24 HRS

WEEKLY WITH IN 24 HRS

WEEKLY WITH IN 24 HRS

DELIVERY

Qno.18

COMPARISION OF CURRENT MODEL WITH OTHER PLAYERS IN THE CATEGORY:

On the basis of POPULATION

POPULATION OF PUNE IS: 35,08,529

COMPANY HEINZ NESTLE DABUR CADBURY GSK R&B KALLOGS

NUMBER OUTLET

OF

RETAIL POPULATION/OUTLET 2450 13,745 11,000 8,500 5,000 5,500 4,000 1432 255 318 413 702 638 877

INTERPRETATION:

The above table shows the number of Retail Outlets of the respective companies as well as the 1 outlet for how much population. Example: The total number of Outlets selling Heinz Products in Pune is 2450, and the Population of Pune is 3,508,329 , so for 1432 people of Pune , Heinz has one outlet and similar for all.

Qno19 ON THE BASIS OF SERVICE:

COMPANY

NUMBER OF RT OUTLETS

NUMBER OF RT. DISTRIBUTOR

AVERAGE OUTLET/DISTRIBUTOR

NUMBE R OF DSR

AVERAGE OUTLET/DSR

HEINZ

2,450

817

11

223

NESTLE

13,745

1,964

50

275

DABUR

11,000

1572

48

230

CADBURY

8,500

1214

40

213

GSK

5,000

2,500

22

227

R&B

5,500

688

31

177

KALLOGS

4,000

667

18

222

INTERPRETATION The above Table shows ,the average number of outlets each Distributor is serving as well average number of Outlets which DSR has to cover in 1 WEEK. Example :

One Distributor of Heinz is serving on an average 817 outlets. Also Each DSR has to cover 223 outlets on an average in a week.

Qno.20 BASIS OF PERFORMANCE OF DSR:

NAME OF BEAT THE DSR NAME

OUTLETS IN THE TOTAL EFFECTIVE BEAT CALLS CALLS PRODUCTIVITY

LAXMAN

CHAMP2

33

32

29

87%

DEEPAK

KOTHRUD WADGAON SHERI

32

24

22

68%

KUCHEKAR

47

30

25

53%

HADAPSARMAHENDRA 3 SALUNKI VIHAR KARVE NAGAR

31

31

27

87%

PATODAR

36

29

19

52%

SABBIR

44

30

22

50%

INTERPRETATION:

It is clear from the above table that, in a beat where the number of OUTLET is more than 35, the productivity is very low as compared to areas having outlets up to 30.

Qno20 ON THE BASIS OF SALARY:

COMANY NESTLE DABUR CADBURY GSK R&B KALLOGS HEINZ

DSR'S SALARY 6,000 - 14,000 10,000 7,000 5,500-7,500 5,500 5,500-6,500 5,000

INTERPRETATION:

Heinz is paying lowest salary to its DSR as compared to other players in the market.

SWOT ANALYSIS

SWOT ANALYSIS OF CURRENT DISTRIBUTION MODEL OF HEINZ:

FINDINGS:

1. The main reason behind not selling of Heinz Product is Lack of Availability of Products. 2. 28% Outlets among the Target Outlets are still not selling Heinz Products. 3. The Highest Selling SKU is Glucon-D, present in 325 outlets. 4. Heinz Ketchup is just present in 48 outlets.

5. Maximum outlets having monthly sales between Rs 3000- Rs 6000 6. 75% of the outlets purchase stock from Distributor . 7. 34% of the retailer say DSR dont come to their outlets. 8. In 48% outlets, stock is delivered on 2nd day. 9. 53% of the retailer say that they are not satisfied with the Distributor. 10. Number of outlets of Cadbury and GSk are 3.5 times and 2 time respectively more than Heinz in Pune. 11. Productivity is Low in the Beats where outlets are more than 35. 12. Heinz is paying lowest salary to its DSR as compared to other players in the market. 13. There are Stock Out during the season. 14. DSR are not satisfied with their current salary. 15. The average calls attended by DSR per Day is 25-30

LIMITATION

1 The sample size is Limited to only 492 outlets and also Outlets are chosen randomly. 2 While doing my tasks assigned to me in my internship practice I faced the following limitations: Time was the main constraint for me being very short.

Some customers have not given proper information.

Some customers were not interested to give any kind of information.

Behaviour of some was very variant.

exact.

Some shopkeepers were very busy too so I couldnt visited them. The other companies information provided by respective company person might not be

RECOMMENDATIONS AND SUGGESTIONS

1 Scientific Approach to Beat Restructuring

With the help of each DSR outlets of Pune were mapped online in order to find out uncovered areas and restructure beats in the following way: 1) A new DSR can be ideally deployed in the pockets not serviced by the current DSRs.

As marked in the above diagram the black squares show the pocked ideal to deploy new DSRs. (The blue placemarks show each outlet and the blue boundaries show beat region)

2) It is ideal to have 40 outlets per beat so that the DSR can service the beat properly, In order to decide which outlets would be best suitable , the maps help in the following way:

The upper beat has 44 outlets and the lower beats have 33 outlets, in order to optimize the number the shops from the upper bear marked in the black square can be included in the lower beat.

3) Further Shops which are ideal for Displays and Promotions which will give maximum visibility can be identified. As shown in the image below the shop at near Railway Station is readily identified with the Map.

Time motion study of DSR

Capturing the time data for the market visit it has been found that: Average time taken for a call by DSR (per outlet): 5 mins. To cover 40 outlets a minimum of 4 hours is required (3.5 hours + 0.5 hours of travelling) DSRs mostly start the markets by 10:30 am and shops start to close by 2:00 pm, hence with only 3.5 hours, only 28-33 shops are covered. This brings down the effective coverage to only 83%. It was observed that on an average 23-25 productive calls were made per beat.

Recommendations for ensuring effective coverage At the end of the day each DSR sends an SMS stating the number of call made and the number of productive calls. At end of each day knowing that 33 calls are sufficient to make 25 productive calls ,a DSR can be tracked for effective coverage

Use of parallel software A DSR bills the order at the end of the day in IRIS. A print of the bill is taken and then a load is taken out from another software at the distributor point. At points where the load is generated by DSRs, due to unavailability of operator who takes out the load, it in turn affects the productivity of the DSRs since the load generation takes a long time. This in turn makes the DSRs to make lesser number of call so that they have lesser number of orders for load generation.

Recommendation for parallel software

The Distributor should be convinced to have an operator who would be doing the load for all the bills, this was done in Pune and issue of the DSRs was addressed.

Use of Product Catalogue and Service Register It was observed that most of the DSRs were not using the Product Catalogue, the SKUs are normally just called out and the order is taken. More often some of the SKUs are not called and also the Brand recall amongst the retailer is affected. This affects LBPC.

Recommendation for Product Catalogue and Service Register During the visit with DSR it has to be ensured that the register and product catalogue are used, at the end of the call calculating LBPC and the productivity should be used to convince the regular use of catalogues and registers. a. In a beat, if there are more than 10 Acategory outlets , In this case, the number of outlets in that particular beat restrict to 25. b. In a beat if the number of A category is less than 5.In this case, the number of outlets restrict to 35. c. Appoint a separate person for billing purpose. Make a proper schedule , so that after every 2nd month all the expiry should be cleared from the market.

CONCLUSION

During my internship training at H.J Heinz India Pvt. Ltd. I have learned a lot and my vision & practical exposure has broadened very much from my two months internship.

Further,I also concluded that 100 per cent concentration, full care analytical ,descriptive & communication skills are key prerequisites for working in an industry. Any how ,precisely speaking this internship of two months is memorable period for me during which I availed the opportunity to flourish my communication skills ,polish my capabilities & abilities upgrade my knowledge about FMCG industry and broaden my vision and exposure towards practical life.

BIBLIOGRAPHY

Websites Referred www.heinz.co.in www.google.com www.gpi.com www.marketportfolio.com

Books

Kothari,C.R Research methodology Methods and techniques. New Delhi: Wiley Eastern Ltd.,1991. Aaker,Kumar and Day Market Research .New Delhi :Wiley Dreamtech.,2006.

Other references: H.J Heinz India Pvt. Ltd. manual.

ANNEXURE

RETAILERS QUESTIONNAIRE

OUTLET NAME: NAME OF THE RETAILER: ADDRESS: Beat Name: Qno.1 Type of the Shop ? Medical Shop Super Shop General Stores CONTACT NO:

Qno2. Do you sell Heinz Product? Yes Qno3 If no, what is the reason? Lack of Demand Lack of availability If any other, explain _______________________________________________________________________ _______________________________________________________________________ Qno.4 If Yes, Which among the Following Skus you sell? Heinz Ketchup Nycil Sampriti Qno5 What is the amount of present stock of Heinz available at your outlet? Below Rs 3000 Rs 6000- Rs 9000 Rs 3000- Rs 6000 Rs 9000 onwards Complan Glucon-D Low margin Low Promotional Scheme No

Qno6 From where you Purchase the Heinz Products?

Distributor

Wholesaler

Other, If any, Please mention: _____________________________________________ Qno7 What is the frequency of DSR visit? Once in a week More than 10 days Twice in a Week Dont come

Qno8 Are you aware about the current schemes of offered by the company? Yes Qno9 What is the mode of Purchase by you? Cash Credit No

Qno10 If Credit, What is the credit period being given to you ? 3 Days 2 weeks Qno 12 How Long it takes to Deliver your order ? With in 24 hours 3rd Day 2nd Day More 1 week More

Qno 13 If more, How long? ______________________________________________________________________ Qno14 Are you satisfied with the current service of the Distributor? Yes No

If No, Why____________________________________________________________

Qno 15 Is there any visibility scheme offered to you by the company?

Yes

No

If yes, Which_________________________________________________________

Suggestions, If any,________________________________________________________ ___________________________________________________________________________

QUESTIONNAIRE FOR COMPANY PERSON:

Qno1 Name of the COMPANY: ______________________________. Qno2 Profile: ______________________________________________. Qno3 Number of Distributor: _________________________________. Qno4 Number of Retailers: ___________________________________ . Qno5 Number of DSR:_______________________________________. Qno6 What is the credit policy for Retailers______________________. Qno7 How long is your delivery Period __________________________. Qno8 What is the salary of your DSR ___________________________. Qno9 What is your ideal Beat size_______________________________.